How to start a moving company: 10 steps to launch and grow

Published Friday 29 August 2025

Table of contents

• Why start a moving company?
• How to start a successful moving company in 10 steps
• Track your moving company finances with confidence
• FAQs on starting a moving company

Key takeaways

• Develop a comprehensive business plan that defines your moving company type (local, long-distance, commercial, or specialty) and includes startup cost projections of $50,000-$200,000 for equipment, insurance, and operational expenses.
• Obtain all required legal documentation including federal EIN registration, USDOT numbers for interstate moves, commercial driver's licenses, and comprehensive insurance coverage including commercial auto, general liability, and cargo protection.
• Implement competitive pricing strategies by researching local competitors and calculating all operational costs including wages, fuel, maintenance, and insurance to ensure profit margins between 7-10%.
• Build a strong brand presence through professional website development, local SEO optimization for searches like "movers near me," and encourage customer reviews on Google and Yelp to establish credibility and attract new clients

Why start a moving company?

Starting a moving company is the process of launching a transportation business that helps people and businesses relocate their belongings. With proper planning and legal compliance, moving companies can generate strong profits in a high-demand industry, though it's important to note the sector faces scrutiny; the federal government receives roughly 3,000 consumer complaints about interstate movers annually.

Moving company ownership offers significant financial and lifestyle benefits, but requires careful planning and substantial investment. .

To succeed, you need to follow these steps:

• Plan your business: Create a roadmap for operations and finances
• Register your business: Register your business and obtain required permits
• Buy equipment: Purchase trucks, moving supplies, and insurance
• Attract customers: Build marketing systems to attract clients

Key benefits

High demand: Americans move 11% of the time each year, creating consistent business opportunities

Low barrier to entry: Start with a single truck or van

Flexible operations: Choose local, long-distance, or specialty moving services

Strong profit potential: Successful moving companies typically achieve 10-20% profit margins

Essential requirements

• Legal compliance: Business registration, permits, and commercial licenses
• Equipment investment: Trucks, moving supplies, and protective gear typically cost $50,000-$150,000
• Insurance coverage: Commercial auto, general liability, and cargo protection
• Ongoing expenses: Fuel, maintenance, employee wages, and marketing costs

How to start a moving company in 10 steps

To build a successful moving company, decide what you want your business to be and how you want to run it. Follow these 10 steps to start your moving business:

1. Develop a business plan

A moving company business plan is a detailed document that outlines your strategy for launching and operating a profitable moving business. It serves as your roadmap for securing funding, understanding costs, and making strategic decisions.

Essential components include:

• Write an executive summary: Give a one-page overview of your business goals, target market, competitive advantages, and projected revenue. This section helps investors or lenders decide if they want to learn more.
• Describe your company: Define your moving business model and service focus.

Moving company types:

• Local movers: Serve moves within 25-100 miles, require fewer permits, lower startup costs
• Long-distance movers: Handle interstate moves and need federal licensing, which brings higher revenue potential but also greater scrutiny; the FMCSA maintains a list of movers to target for investigation based on complaints.
• Commercial movers: Focus on business relocations, office equipment, higher-value contracts
• Specialty movers: Handle pianos, art, antiques, or other valuable items, premium pricing

2. Choose your business structure

Business structure selection determines how your moving company pays taxes, protects personal assets, and handles legal liability. Your choice affects everything from daily operations to long-term growth potential.

The four common legal structures are:

• sole proprietorship
• limited liability company (LLC)
• C corporation
• S corporation

Each kind of legal entity has pros and cons. For example, while forming an LLC or corporation can help protect your personal assets from business lawsuits, the IRS clarifies that a multi-member LLC is by default classified as a partnership for federal tax purposes unless it elects to be treated as a corporation.

3. Register for taxes

Tax registration establishes your moving company's tax obligations with federal, state, and local authorities. Complete these steps before accepting your first customer.

Required registrations:

• Federal EIN: Apply free through IRS.gov for tax filing and employee hiring, but be aware that the online application cannot be saved and expires after 15 minutes of inactivity.
• State sales tax: Register to collect tax on moving services (varies by state)
• Payroll taxes: Set up if hiring employees for Social Security, Medicare, unemployment
• Motor carrier taxes: May include fuel taxes and International Fuel Tax Agreement (IFTA) registration
• Local business taxes: Check city and county requirements for business operations

4. Determine startup costs and equipment needed

Moving company startup costs typically range from $50,000 to $200,000 depending on your service scope and equipment choices. Understanding these expenses helps you secure adequate funding and set realistic pricing.

Essential equipment costs:

• Moving truck: $30,000-$80,000 new, $15,000-$40,000 used
• Moving supplies: $2,000-$5,000 for dollies, straps, blankets, boxes
• Safety equipment: $500-$1,500 for protective gear and tools

Ongoing operational expenses:

• Commercial insurance: $3,000-$8,000 annually
• Fuel and maintenance: $500-$2,000 monthly per vehicle
• Licensing and permits: $500-$2,500 initially
• Marketing: $500-$2,000 monthly for website, advertising

5. Get the right permits and insurance

Registering your company and obtaining the necessary permits is a legal requirement. You may need a federal US Department of Transportation (USDOT) number, state-specific licenses, and a commercial driver's license (CDL).

You also need business insurance. You may need commercial auto insurance, cargo insurance to cover shipments, and general liability insurance. Requirements vary by state, so it's smart to consult a legal professional.

6. Choose your service type and niche

Decide what type of moving jobs you want to do. This will help you focus your marketing and operations. Consider these common moving company types:

• Local moving companies restrict services to local moves, which can mean lower startup costs and fewer licensing requirements.
• Specialty service movers offer niche services for valuable or fragile items like pianos, art, or antiques.

7. Define your target market

Your target market depends on the services you offer. To narrow it down, ask yourself what locations you will serve and what types of customers (commercial or residential) you want to attract.

Understanding your target market is necessary for obtaining and keeping your customers, as it guides your marketing efforts.

8. Set your prices

Check your competitors' prices before setting your own. Make sure your pricing covers your costs and lets you earn a profit. Calculate all your expenses, including wages, operating costs, insurance, and fuel.

Common pricing methods include charging by the hour, by the mile, or a combination of weight and mileage.

9. Develop a marketing plan and build your brand

Brand building establishes your moving company's identity and helps customers find and trust your services. A strong brand differentiates you from competitors and justifies premium pricing.

Brand development tips:

• Company name: Choose something memorable and check domain availability
• Professional logo: Invest in design that works on trucks, uniforms, and marketing materials
• Website creation: Include services, pricing, contact info, and customer testimonials
• Online reviews: Encourage satisfied customers to leave Google and Yelp reviews
• SEO strategy: Optimize for local searches like "movers near me" and "moving company [city]"

You can also use social media, a Google Business Profile, and local business directories to reach your target market

10. Open a business bank account

To keep your company's finances separate from your own, a business bank account is a must-have. It makes things easier when filing your taxes. Plus, it’s helpful if you want to eventually open a company credit card or take out a business loan.

Use Xero to track your moving company finances with confidence

Starting a moving company involves many steps, from planning and licensing to marketing and pricing. As you grow, keeping your finances organized is key to profitability and peace of mind.

Xero provides simple, powerful accounting tools to help you manage cash flow, track expenses, and run your business, not your books. Try Xero for free and see how easy it can be.

FAQs on starting a moving company

Find answers to common questions about starting your own moving company below.

What is the average profit for a moving company?

Profit margins vary by location, services, and how you run your business. Many moving company owners aim for a profit margin between 7% and 10%.

Running your business efficiently, setting accurate prices, and giving great customer service can help you earn more.

Do I need an LLC to start a moving company?

You don't have to form an LLC, but it's a popular choice for new moving companies. An LLC can help protect your personal assets from business debts and lawsuits.

Other options include a sole proprietorship or a corporation, and it's wise to consult with a legal professional to choose the best structure for your situation.

How much does a moving license cost?

Costs for licenses and permits vary significantly by state and whether you operate across state lines. A US Department of Transportation (USDOT) number is free, but a Motor Carrier (MC) number for interstate moves costs around $300.

Local permits can range from $10–$100. Always check with your local and state authorities for specific requirements and fees.